Fiscal Reform for a Strong Tunisia: Short Term Technical Assistance Consultant’s Report

The program, known as FIRST, was established to provide technical assistance and support to the Ministry of Finance (MoF) in implementing key reforms. The FIRST initiative began in 2018 with the objective of developing a strategic communications strategy for the 2019 budget law. The consultant's assignment involved developing a stakeholder engagement strategy and revising the overarching FIRST Communication Strategy. The consultant conducted consultations with the FIRST strategic communications team, FIRST tax policy and tax administration staff, FIRST leadership, and MoF communications staff to gather information and insights. The consultant developed an initial draft of the 2019 budget law communication strategy, which aims to provide MoF staff and taxpayers with information on the impact of the 2019 budget law on their daily routines and the economic health of Tunisia. The strategy includes provisions for persuasive messaging to encourage voluntary tax compliance and build a more positive, customer-oriented image of MoF as an institution. The strategy takes into account the MoF's reluctance to communicate details of the budget law prior to its passage in mid-December, limited MoF communication staff and financial resources, and the broader obligations of the FIRST strategic communications team to create an ambitious, but achievable plan of action. The consultant also created a draft stakeholder engagement strategy that outlines a more interactive and proactive approach for MoF and FIRST to undertake in their efforts to build ongoing dialogue in 2019. The strategy describes a set of tactics and activities that MoF can use to begin building positive relationships with tax stakeholders. The strategy emphasizes the need for MoF to build confidence in the long-term process of stakeholder engagement and establish core platforms for recurring stakeholder dialogue and feedback. The revised draft of the overarching FIRST Communication Strategy was developed based on recent survey data commissioned by FIRST, which shows that citizen confidence and trust in MoF remains low, and attitudes toward paying taxes remain negative. The strategy includes updates to tactics and activities based on the experience of the FIRST strategic communications team and MoF communication staff. FIRST will support increased digital, print, and event-driven communication activities in PY2, in keeping with the activities outlined in the 2019 budget law communication and stakeholder engagement strategies. Key observations made during the consultant's assignment include limited and/or slow MoF buy-in for FIRST communication activities, which appears to be the primary factor limiting their implementation. Several FIRST communication efforts crucial to effective communication on the 2019 budget law remain stalled awaiting MoF approval or allocation of support staff. The consultant noted that MoF's highly conservative approach to communication is driven by bureaucratic concerns and a perception that proactive communication efforts present little upside for either individuals or MoF as an institution. The consultant also observed that the FIRST strategic communications team's ability to adhere to its work plan, communication strategy, and weekly schedule of activities is constrained because MoF communications staff do not share their calendar of upcoming activities. The consultant recommended that FIRST work to develop a more consistently collaborative relationship with MoF communications staff, particularly the communications working group, as a means of encouraging MoF to communicate more proactively and systematically. The consultant's recommendations also include supporting and advocating for MoF to undertake a more proactive and customer-oriented approach to communication and stakeholder engagement. This whole-of-project effort needs to highlight the long-term value to MoF offered by this approach in terms of greater public support for tax policy changes, more efficient tax administration, and increased revenue generation.